I have purchased assignable contracts and I paid for them as the paper they are… Usually cash, but I verify the contract to be a “real deal”. I look real at the deal to be sure the home work was done and it is a good deal for me. I know of other investors that have purchased bogus contracts and had no real recourse as the person that they buy it from had no assets to go after. I would rather do the Simo and let my accountant deal with the taxes… GEEEZ why does everyone hate paying taxes… they manage the tax dollar so well now ROFL
Ciao Cliff
Does anyone have experience with this method. I know it is
not as profitable as doing an actual flip but I am considering a smaller fee
in exchange for no risk.
My assignment contract indemnifies assignor against any liability arising
from the performance or nonperformance of the assignee.
Please give opinions and suggestion. Any and all appreciated.
Sincerely Yours,
Adrienne
If you don’treally know the person you are assigning the contract to you would want then to assume liability. You still may have that liability to the seller that the assignment does not relieve. You should have a clause in the contract with your seller that limits your liablity.
Maybe I’m missing something, but the way I understand it is an assignment is about the best kind of flip you can perform, because you do avoid a double closing. You assign and your assignee closes.
I think what she means in that she gets paid for the assigned contract when it is assigned, rather than a traditional flip, where she would get paid at the simo closing… when her end buyer funds the deal. Am I right, Adrienne?
I am interested in the answer to this too, although I have only seen it done the simo-close way, where you have to wait till closing to get your money.